If you are operating your business on your own, it is very likely that you do not have the money to hire a payroll service says Peter DeCaprio. However, the time has come when every business needs to hire this kind of service.
What is Payroll Anyway?
Payroll is simply the portion of an employee’s earnings that come from their salary and not their tips or bonuses. It usually includes taxes and benefits like health insurance, unemployment insurance, retirement plans and more. Your company calculates payroll based on each employee’s gross pay (earned before taxes) at regular intervals like weekly or bi-weekly. Once the details about how much each employee should get in wages for work performed is determined, companies cut checks to distribute the funds to the employees via direct deposit or physical checks.
Payroll Service – Why should you hire one?
Here are the top reasons why every business needs to start using payroll service:
1. Guaranteed minimum payments for employees –
If an employee leaves, becomes disabled, or even dies, your company is legally responsible for ensuring that they have received their minimum payments. You can avoid this by paying someone else to do it for you. Most payroll tax services guarantee that your employees will get at least 80 percent of their regular wages if something unforeseen happens to them explains Peter DeCaprio. This way, you are not held responsible for any legal action brought forth because of incorrect payment distribution or insufficient funds to cover wages due to missing or deceased employees.
2. Tax advantages –
The IRS allows companies with payroll services to write off federal income taxes, unemployment tax, and workers’ compensation costs as a business expense. If you run your payroll on your own without a paycheck service, you won’t be able to claim those expenses.
3. Security –
It’s always better to trust someone else with something as important as paying your employees with accurate funds that can cover their needs during an emergency or unexpected situations. Hiring a reputable payroll service will ensure that the job is done right from start to finish with no chance of employee fraud or data theft from within the organization. This way, everything will be upfront and legal so there will be no fear of being subject to fines for noncompliance once audits are conducted by regulators like the IRS.
4. Cost savings –
A payroll tax service can handle all aspects of payroll for you, which saves money and time. You will not need an accountant or bookkeeper to figure out your taxes and pay your employees because they do it for you in less than a week with the most affordable price in the market.
5. Accuracy –
You can avoid mistakes that could cost you even more down the line by having everything done by a third party who doesn’t know your business inside and out like someone on your own payroll might says Peter DeCaprio. The risk of misinterpreting complicated (or outright wrong) calculations is greatly diminished when an outside contractor does it instead of someone who works with you every day.
6. Flexibility –
Implementing new protocols or old ones is much easier when you outsource your business. You can get more done in the same amount of time at a fraction of the cost. If you team up with experts who bring all their experience and knowledge. To bear when helping you solve problems or streamline systems.
7. Guaranteed results –
When using payroll tax services, you’ll have access to an actual human being with a great deal of experience working in this area. That will take care of every aspect of the payroll process in a timely manner for a reasonable price.
8. Savings from mistakes –
A trusted outside contractor can help you avoid fines from noncompliance, overpaying employees. Even accidentally underpaying them by double-checking everything they do before it’s too late.
Much Does Payroll Services for Small Business Cost?
Payroll tax services average about $100 to $150 per month for an individual with one employee. And averages about $350 to $450 per month for small companies with up to 10 employees. Peter DeCaprio explains payroll service can save you 10 percent or more of your payroll costs when compared to doing it on your own. Without a good bookkeeper on payroll every single day. You only pay for what you need, so if you have three employees instead of five. There is no need to pay for the extra two positions that aren’t being used. You will be charged a flat fee or hourly rate depending on the level of service you desire.
After reading this, if you are thinking ‘Does my business need a payroll service?’, then yes, it does. Payroll tax services can solve problems before they even occur while saving you time and money in the process.